Byrd Inc. granted Roger, its president, an option to purchase 11,000 shares for $9 per share. On
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Question:
Byrd Inc. granted Roger, its president, an option to purchase 11,000 shares for $9 per share. On February 16, 2018, he acquired the 11,000 shares under the option. The following pertains to the shares:
Option granted- July 10, 2020- Fair market value: $12
Option exercised- February 16, 2018- Fair market value- $22
Shares to be sold- March 17, 2019- Fair market value- $45
Determine the tax consequences to Roger's income in 2019 if Byrd Inc. was a CCPC.
In 2019, Roger will have an employment income inclusion of $ Blank 1. He will also have a taxable capital gain (not required to calculate the TCG).
Related Book For
Financial and Managerial Accounting
ISBN: 978-1439037805
9th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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